They had negotiated a deal to purchase an editor called BRIEF and a version control package whose name escapes me (might have been VCS?) So I negotiated a deal to invest the funds into the company for a revenue share on the sale of both products plus a warrant to buy stock in SDC. That deal taught me a few big lessons. MORE

Exchangeable share dealstructures solve some of the challenges angels have been having over the past five years. Exchangeable shares solve the biggest problem with convertible notes - the unfair discount - while maintaining their simplicity and cost effectiveness MORE

When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around dealstructures. Not necessarily a bad deal, but if you didn’t have that in your head you’re setting yourself up for a big surprise. Venture Economics MORE

When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around dealstructures. Not necessarily a bad deal, but if you didn’t have that in your head you’re setting yourself up for a big surprise. Venture Economics MORE

There's a lot on my mind right now--dealstructures, building a company, managing expectations, what the future should be, what I really want. I blog less when I'm in it. I'm not sure how to change that, but when I'm in it, I'm less inclined to blog about what's on my mind. That is to say--I'm in it MORE

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. This paragraph is the heart of the whole deal. Amount of Financing : Up to $600,000 may be issued. MORE

With my first sale, my partners and I focused all of our attention on the details of the sale (what the valuation would be, how would it be structured, etc) and very little about what would happen with us individually. It’s easy to get caught up in the dollar signs and dealstructure and overlook this important step in the process. 6. MORE

Different business models lead to different approaches to valuation, dealstructure and diligence process. In each case, the valuation discussion, dealstructure and process will all vary accordingly “[O]ne thing I should tell you is that our approach is our approach, and we don’t even claim it’s the right approach.” MORE

Dealstructure – I could write a full post just on this, but some aspects that were brought up are the need to agree on a reasonable valuation, what investment vehicles are used (convertible debt vs stock, options and warrants and other non-dilutive mechanisms). 10 tips for raising money from business angels. MORE

If I'm a hot deal in NY or SOMA, maybe I can raise and close an angel round in a few weeks. So, context matters to dealstructure. So maybe the guidance for deal docs should be this: Convertible Debt: for founders who need a rolling close so the cash can come in as it's raised. Fred followed up. Everybody's weighing in. MORE

Moreover, some public companies insist that you don’t talk to employees until the deal is closed or almost closed. Dealstructure: the cap table is an agreement between you and the shareholders that says, in effect: “If we sell the company, this is how we pay out founders, employees, and investors.” startups MORE

In the fall of 2010 Mahendra Ramsinghani reached out to me by email about a new book he was working on called The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, DealStructuring, Value Creation, and Exit Strategies. In June 2011 Mahendra sent me and Seth a final draft of the book. MORE

Having a business advisorand a great corporate counsel is important to the final dealsstructure. One local VC indicated they review more than 600 deals per year andinvest in around 6. As statedbefore, your startup will have little or no money for the first severalmonths. These dealscan take many forms. MORE

In a deal recently, the term sheet offered by the prospective investor contained a reference to the term: "fully-diluted" The company accepted the term sheet and the lawyers drafted the documents. allensblog. Thoughts from a startup sherpa. Archives. Profile. Subscribe. Whats a Home Run (in VC-speak) » July 12, 2011. Sign Out. MORE

Setting a structure and price in advance can also expedite the negotiation process, especially when it’s with multiple parties. Above market. By definition, all entrepreneurs should think that their endeavor is truly exceptional. But, also by definition, that just can’t be the case. MORE

Insights from Leading Practitioners on the Art of Raising a Fund, DealStructuring, Value Creation, and Exit Strategies. Venture Deals. The Business of Venture Capital. Raising Venture Capital for the Serious Entrepreneur. Mastering the VC Game. Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms. MORE

Insights from Leading Practitioners on the Art of Raising a Fund, DealStructuring, Value Creation, and Exit Strategies. Venture Deals. The Business of Venture Capital. Raising Venture Capital for the Serious Entrepreneur. Mastering the VC Game. Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms.

In the fall of 2010 Mahendra Ramsinghani reached out to me by email about a new book he was working on called The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, DealStructuring, Value Creation, and Exit Strategies. In June 2011 Mahendra sent me and Seth a final draft of the book.

Different business models lead to different approaches to valuation, dealstructure and diligence process. In each case, the valuation discussion, dealstructure and process will all vary accordingly “[O]ne thing I should tell you is that our approach is our approach, and we don’t even claim it’s the right approach.”

They had negotiated a deal to purchase an editor called BRIEF and a version control package whose name escapes me (might have been VCS?) So I negotiated a deal to invest the funds into the company for a revenue share on the sale of both products plus a warrant to buy stock in SDC. That deal taught me a few big lessons.

In the fall of 2010 Mahendra Ramsinghani reached out to me by email about a new book he was working on called The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, DealStructuring, Value Creation, and Exit Strategies. In June 2011 Mahendra sent me and Seth a final draft of the book.

Moreover, some public companies insist that you don’t talk to employees until the deal is closed or almost closed. Dealstructure: the cap table is an agreement between you and the shareholders that says, in effect: “If we sell the company, this is how we pay out founders, employees, and investors.” startups

With my first sale, my partners and I focused all of our attention on the details of the sale (what the valuation would be, how would it be structured, etc) and very little about what would happen with us individually. It’s easy to get caught up in the dollar signs and dealstructure and overlook this important step in the process. 6.

There's a lot on my mind right now--dealstructures, building a company, managing expectations, what the future should be, what I really want. I blog less when I'm in it. I'm not sure how to change that, but when I'm in it, I'm less inclined to blog about what's on my mind. That is to say--I'm in it

When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around dealstructures. Not necessarily a bad deal, but if you didn’t have that in your head you’re setting yourself up for a big surprise. Venture Economics

Last week , we gave some attention to the “why” behind convertible note financing for early stage startups. In this installment, I’ll dig into the “how” by dissecting an example term sheet based on a real deal. This paragraph is the heart of the whole deal. Amount of Financing : Up to $600,000 may be issued.

Dealstructure – I could write a full post just on this, but some aspects that were brought up are the need to agree on a reasonable valuation, what investment vehicles are used (convertible debt vs stock, options and warrants and other non-dilutive mechanisms). 10 tips for raising money from business angels.

Setting a structure and price in advance can also expedite the negotiation process, especially when it’s with multiple parties. Above market. By definition, all entrepreneurs should think that their endeavor is truly exceptional. But, also by definition, that just can’t be the case.

When it comes to convertible debt, I’ve had a few instances recently where “out of sight, out of mind” has created some misunderstandings around dealstructures. Not necessarily a bad deal, but if you didn’t have that in your head you’re setting yourself up for a big surprise. Venture Economics

If I'm a hot deal in NY or SOMA, maybe I can raise and close an angel round in a few weeks. So, context matters to dealstructure. So maybe the guidance for deal docs should be this: Convertible Debt: for founders who need a rolling close so the cash can come in as it's raised. Fred followed up. Everybody's weighing in.

Having a business advisorand a great corporate counsel is important to the final dealsstructure. One local VC indicated they review more than 600 deals per year andinvest in around 6. As statedbefore, your startup will have little or no money for the first severalmonths. These dealscan take many forms.

Exchangeable share dealstructures solve some of the challenges angels have been having over the past five years. Exchangeable shares solve the biggest problem with convertible notes - the unfair discount - while maintaining their simplicity and cost effectiveness

In a deal recently, the term sheet offered by the prospective investor contained a reference to the term: "fully-diluted" The company accepted the term sheet and the lawyers drafted the documents. allensblog. Thoughts from a startup sherpa. Archives. Profile. Subscribe. Whats a Home Run (in VC-speak) » July 12, 2011. Sign Out.